After decreasing on a week-over-week basis for the previous five weeks, mortgage applications reversed course and increased 4.2% on an adjusted basis during the week ended Aug. 17, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The increase came mainly from a boost in applications for refinances, as rates retreated slightly.
Applications for refinances increased a surprising 6% compared with the previous week, as applications for purchases increased 1%.
On an unadjusted basis, total volume increased 3% compared with the previous week. Applications for purchases increased one percent on an unadjusted basis and were 1% higher compared with the same week one year earlier.
The average rate for a 30-year fixed-rate mortgage, based on closings, was flat compared with the previous week at 4.81%.
The average rate for a 30-year jumbo was 4.68%, down from 4.73%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 4.00%, down from 4.06%.
The refinance share of mortgage activity increased to 38.7% of total applications, up from 37.6% the previous week.
The ARM share of activity increased to 6.5% of total applications.
